ROCKLAND, Mass.--(BUSINESS WIRE)--
Independent Bank Corp., (NASDAQ: INDB), parent of Rockland Trust
Company, today announced first quarter of 2009 net income of $6.4
million, and net income available to common shareholders of $5.2
million, or $0.32 on a per diluted share basis. This compares with net
income of $3.0 million, or $0.18 on a diluted earnings per share basis
for the fourth quarter 2008, and net income of $6.3 million, or $0.44 on
a diluted earnings per share basis for the first quarter of 2008. The
increase in earnings from the quarter which ended December 31, 2008 is
primarily due to other-than-temporary impairment charges and higher loan
provisions recorded during the fourth quarter of 2008.
Loan and deposit balances grew during the first quarter of 2009, despite
the challenging economic environment, as the Company took advantage of
opportunities created by market turmoil. Total loans increased by $16.7
million and total deposits increased by $74.7 million during the first
quarter of 2009 when compared to December 31, 2008.
First quarter 2009 results included merger and acquisition expenses of
$1.0 million after-tax and an after-tax gain of $0.9 million on the sale
of securities. Excluding these items, net operating earnings were $5.3
million, or $0.33 on a per diluted share basis, for the quarter ended
March 31, 2009 compared to net operating earnings and diluted earnings
per share for the quarters which ended December 31, 2008 and March 31,
2008 of $3.0 million and $0.18, and $6.9 million and $0.48,
respectively. A reconciliation table which sets forth the computation of
net operating earnings is included in the financial statement schedules
attached to this press release.
"Rockland Trust had solid financial performance during the first quarter
of 2009," said Christopher Oddleifson, President and Chief Executive
Officer. "The stability and safety of our organization has distinguished
us from our competition in a challenging economic climate. Customers
continue to turn to Rockland Trust as a secure place for their deposits
and as a lender that is willing and able to meet their credit needs."
"We are eagerly looking forward to the upcoming integration of the
Benjamin Franklin Bank," added Oddleifson. "We are excited about
expanding into new territory and welcoming Benjamin Franklin customers
and employees to Rockland Trust next month."
CAPITAL PURCHASE PROGRAM REPAYMENT
On January 9, 2009, the Company raised approximately $78 million through
the sale of preferred stock to the United States Treasury pursuant to
the Capital Purchase Program (the "CPP"). All of the proceeds from that
transaction have been treated as Tier 1 capital for regulatory purposes.
The preferred dividend expense in the first quarter amounted to $1.2
million, or $0.07 on a per share basis.
On April 22, 2009 the Company repaid all of the approximately $78
million CPP preferred stock investment. The Company and Rockland Trust
both continue to be "well-capitalized" by applicable regulatory
standards following that repayment. Management will discuss the impact
of the repayment of CPP funding on the second quarter of 2009 and the
remainder of the year on the earnings conference call.
NET INTEREST INCOME
Comparing the quarter ended March 31, 2009 to the quarter ended December
31, 2008, net interest income decreased $506,000, or (1.7%). The net
interest margin for the comparable periods was 3.55% and 3.81%,
respectively. The primary reason for this decline is the steady lowering
of rates by the Federal Reserve in the fourth quarter of 2008, which
caused the Company's asset yields to reprice faster than its liability
costs. A significant additional factor in the margin compression was the
Company's large position in low-yielding, highly liquid short term
assets, averaging $121.4 million in the quarter, primarily due to better
than anticipated deposit growth during a period when the Company usually
experiences seasonal declines in deposit levels.
NON-INTEREST INCOME
The Company recorded non-interest income of $10.5 million during the
first quarter of 2009, an increase of $6.8 million when compared to the
quarter ended December 31, 2008. The change in non-interest income is
attributable to the following:
-- Service charges on deposit accounts decreased by $266,000, or (6.8%),
mainly due to declines in overdraft and insufficient fund fees.
-- Wealth management revenue decreased by $250,000, or (9.7%). Despite very
weak stock market conditions in the first quarter, assets under
management remain stable at $1.1 billion.
-- Mortgage banking income increased by $659,000, or 132.6%, as a result of
increased originations. The balance of the mortgage servicing asset was
$1.5 million at both March 31, 2009 and December 31, 2008 and loans
serviced amounted to $237.9 million and $250.5 million, respectively.
-- During the first quarter of 2009, the Company recorded a $1.4 million
gain on the sale of securities. There were no gains or losses on the
sale of securities during the fourth quarter of 2008.
-- The Company recorded no Other-Than-Temporary Impairment ("OTTI") charges
in the first quarter of 2009. For the quarter and year ended December
31, 2008 the Company recorded OTTI on certain investment grade pooled
trust preferred securities, which resulted in a negative charge to
non-interest income of $4.6 million pre-tax and $7.2 million pre-tax,
respectively. Pursuant to the recent Financial Accounting Standards
Board pronouncements, which stated that previously recorded impairment
charges which did not relate to credit loss should be reclassified from
retained earnings to other comprehensive income ("OCI"), during the
first quarter of 2009 the Company recorded a cumulative effect
adjustment that increased retained earnings and decreased OCI by $6.0
million pre-tax or $3.8 million after-tax.
-- Other non-interest income increased by $663,000, or 116.7%, due to
increased trading asset gains and interest rate swap income.
NON-INTEREST EXPENSE
The Company recorded non-interest expense of $28.3 million in the first
quarter of 2009, an increase of $1.7 million, or 6.5%, when compared to
the quarter which ended December 31, 2008.
-- Salaries and employee benefits increased by $391,000, or 2.7%, primarily
attributable to an increase in payroll taxes and medical plan insurance.
-- Occupancy and equipment expense increased by $286,000, or 8.4%, mainly
due to an increase in snow removal costs.
-- The Company recorded merger and acquisition expenses of $1.5 million for
the quarter ended March 31, 2009, associated with the acquisition of
Benjamin Franklin Bancorp, Inc., consistent with new accounting
standards effective January 1, 2009 regarding business combinations.
There were no merger and acquisition expenses for the quarter ended
December 31, 2008.
-- Other non-interest expense decreased by $488,000, or (7.2%), which is
primarily attributable to decreases in other losses and charge-offs of
$132,000 and amortization of intangible assets of $108,000.
The Company reported a return on average assets and a return on average
common equity in the first quarter of 2009 of 0.56% and 6.59%,
respectively, as compared to 0.34% and 3.92% for the quarter ended
December 31, 2008.
BALANCE SHEET
Total assets increased by $138.0 million, or 3.8%, to $3.8 billion at
March 31, 2009 as compared to December 31, 2008.
Total loans were $2.7 billion at both March 31, 2009 and December 31,
2008 compared to $2.5 billion at March 31, 2008. During the first
quarter of 2009 loans grew by $16.7 million, or 2.5% on an annualized
basis. The loan growth was concentrated in the commercial and industrial
category. Total commercial loans (including small business) now
represent 62.6% of the total loan portfolio. As compared to a year ago,
total loans grew by $153.6 million, or 6.1%.
Securities decreased by $43.9 million, or (6.6%), during the quarter
ended March 31, 2009. The decrease is primarily attributable to pay
downs of approximately $33.0 million.
Total deposits increased by $74.7 million, or 2.9%, during the quarter
ending March 31, 2009, as compared to December 31, 2008. The Company
believes that this increase is attributable to customers retaining
additional balances in deposit accounts due to the turbulent stock
market.
Borrowings decreased by $22.9 million, or 3.3%, during the quarter
ending March 31, 2009, as compared to December 31, 2008, primarily
attributable to scheduled pay downs of outstanding Federal Home Loan
Bank borrowings.
Stockholders' equity at March 31, 2009 totaled $393.5 million as
compared to $305.3 million at December 31, 2008, primarily due to the
Company's receipt of the CPP preferred stock investment during the
quarter which has since been repaid. The Tier 1 leverage capital ratio
at March 31, 2009 was 9.77%, maintaining the Company's well-capitalized
position. The following table shows the Company's Capital Ratios at the
dates indicated below.
Independent Capital Ratios
Actual Estimated
Before CPP with CPP
12/31/2008 3/31/2009
Leverage Ratio 7.55 % 9.77 %
Tier 1 Capital to
Risk Weighted Assets Ratio 9.50 % 12.59 %
Total Risk Weighted Assets Ratio 11.85 % 14.91 %
ASSET QUALITY
The allowance for loan losses was $37.5 million at March 31, 2009 as
compared to $37.0 million at December 31, 2008. Nonperforming loans
totaled $29.0 million, or 1.08% of total loans at March 31, 2009, as
compared to $26.9 million, or 1.01% of total loans at December 31, 2008.
The Company's allowance for loan losses as a percentage of loans was
1.40% and 1.39% at March 31, 2009 and December 31, 2008, respectively.
The provision for loan losses was $4.0 million and $5.6 million, for the
quarter ended March 31, 2009 and December 31, 2008, respectively. Net
charge-offs were $3.6 million and $1.8 million for the periods ending
March 31, 2009 and December 31, 2008, respectively. Of the $3.6 million
in net charge-offs, $2.1 million was related to one commercial
relationship that was provided for in the fourth quarter of 2008. The
provision was increased in the first quarter of 2009 and fourth quarter
of 2008 to account for loan growth experienced in the quarters in
addition to the increase in non-performing loans.
Christopher Oddleifson and Denis K. Sheahan, Chief Financial Officer, of
Independent Bank Corp. and Rockland Trust Company, will host a
conference call to discuss first quarter earnings at 4:45 p.m. Eastern
Time on Wednesday, April 29, 2009. Internet access to the call is
available on the Company's website at http://www.RocklandTrust.com
or by telephonic access by dial-in at 1-800-860-2442 reference: INDB. A
replay of the call will be available by calling 1-877-344-7529, Replay
Passcode: 428956. The web cast replay will be available until April 29,
2010 and the telephone replay will be available until May 15, 2009.
Independent Bank Corp., which has Rockland Trust Company as a
wholly-owned bank subsidiary, currently has approximately $4.6 billion
in assets. Rockland Trust offers a wide range of commercial banking
products and services, retail banking products and services, business
and consumer loans, insurance products and services, and investment
management services. When the anticipated merger of Benjamin Franklin
Bank into Rockland Trust is completed in May 2009, Rockland Trust will
have: 71 retail branches, 10 commercial lending centers, and 2 mortgage
banking centers located in eastern Massachusetts and on Cape Cod; and, 4
investment management offices located in southeastern Massachusetts, on
Cape Cod, and in Rhode Island. To discover why Rockland Trust is the
bank Where Each Relationship Matters(R), visit www.RocklandTrust.com.
This press release contains certain "forward-looking statements" with
respect to the financial condition, results of operations and business
of the Company. Actual results may differ from those contemplated
by these statements. The Company wishes to caution readers not to
place undue reliance on any forward-looking statements. The Company
disclaims any intent or obligation to update publicly any such
forward-looking statements, whether in response to new information,
future events or otherwise.
This press release contains financial information determined by
methods other than in accordance with accounting principles generally
accepted in the United States of America ("GAAP"). The Company's
management uses these non-GAAP measures in its analysis of the Company's
performance. These non-GAAP measures may exclude significant gains or
losses that are unusual in nature, such as securities losses. Because
these gains and losses and their impact on the Company's performance are
difficult to predict, management believes that presentations of adjusted
financial measures excluding the impact of these gains and losses
provide useful information that is essential to a proper
understanding of the operating results of the Company. These disclosures
should not be viewed as a substitute for operating results determined in
accordance with GAAP, nor are they necessarily comparable to non-GAAP
performance measures which may be presented by other companies.
INDEPENDENT BANK CORP. FINANCIAL SUMMARY
(Unaudited - Dollars in Thousands)
% Change % Change
CONSOLIDATED BALANCE SHEETS March 31, December 31, March 31, Mar. 2009 vs. Mar. 2009
vs.
2009 2008 2008 Dec. 2008 Mar. 2008
Assets
Cash and Due From Banks $ 70,554 $ 50,007 $ 80,598 41.09 % -12.46 %
Fed Funds Sold and Short Term 149,729 100 - 149629.00 % n/a
Investments
Securities
Trading Assets 2,580 2,701 3,305 -4.48 % -21.94 %
Securities Available for Sale 558,541 600,291 419,491 -6.95 % 33.15 %
Securities Held to Maturity 30,804 32,789 39,335 -6.05 % -21.69 %
Federal Home Loan Bank Stock 24,603 24,603 24,603 0.00 % 0.00 %
Total Securities 616,528 660,384 486,734 -6.64 % 26.67 %
Loans
Commercial and Industrial 286,178 270,832 259,430 5.67 % 10.31 %
Commercial Real Estate 1,136,411 1,126,295 1,030,085 0.90 % 10.32 %
Commercial Construction 166,272 171,955 163,785 -3.30 % 1.52 %
Small Business 87,137 86,670 73,853 0.54 % 17.99 %
Total Commercial 1,675,998 1,655,752 1,527,153 1.22 % 9.75 %
Residential Real Estate 406,119 413,024 426,674 -1.67 % -4.82 %
Residential Construction 9,727 10,950 7,622 -11.17 % 27.62 %
Residential Loans Held for Sale 22,412 8,351 15,577 168.38 % 43.88 %
Total Residential 438,258 432,325 449,873 1.37 % -2.58 %
Consumer - Home Equity 411,097 406,240 355,367 1.20 % 15.68 %
Consumer - Auto 116,375 127,956 147,232 -9.05 % -20.96 %
Consumer - Other 35,847 38,614 44,317 -7.17 % -19.11 %
Total Consumer 563,319 572,810 546,916 -1.66 % 3.00 %
Total Loans 2,677,575 2,660,887 2,523,942 0.63 % 6.09 %
Less - Allowance for Loan (37,488 ) (37,049 ) (32,609 ) 1.18 % 14.96 %
Losses
Net Loans 2,640,087 2,623,838 2,491,333 0.62 % 5.97 %
Bank Premises and Equipment 36,733 36,429 51,559 0.83 % -28.76 %
Goodwill and Core Deposit 125,726 125,710 127,391 0.01 % -1.31 %
Intangible
Other Assets 127,082 132,001 92,616 -3.73 % 37.21 %
Total Assets $ 3,766,439 $ 3,628,469 $ 3,330,231 3.80 % 13.10 %
Liabilities and Stockholders'
Equity
Deposits
Demand Deposits $ 541,038 $ 519,326 $ 549,581 4.18 % -1.55 %
Savings and Interest Checking 765,258 725,313 686,808 5.51 % 11.42 %
Accounts
Money Market 536,808 488,345 484,634 9.92 % 10.77 %
Time Certificates of Deposit 810,637 846,096 735,922 -4.19 % 10.15 %
Total Deposits 2,653,741 2,579,080 2,456,945 2.89 % 8.01 %
Borrowings
Federal Home Loan Bank 408,480 429,634 332,105 -4.92 % 23.00 %
Borrowings
Fed Funds Purchased and Assets
Sold
Under Repurchase Agreements 169,616 170,880 138,633 -0.74 % 22.35 %
Junior Subordinated Debentures 61,857 61,857 61,857 0.00 % 0.00 %
Subordinated Debentures 30,000 30,000 - 0.00 % n/a
Other Borrowings 2,442 2,946 10,516 -17.11 % -76.78 %
Total Borrowings 672,395 695,317 543,111 -3.30 % 23.80 %
Total Deposits and Borrowings 3,326,136 3,274,397 3,000,056 1.58 % 10.87 %
Other Liabilities 46,780 48,798 29,518 -4.14 % 58.48 %
Stockholders' Equity
Preferred Stock 73,578 - - n/a n/a
Common Stock 163 163 163 0.00 % 0.00 %
Additional Paid in Capital 142,140 137,488 137,054 3.38 % 3.71 %
Retained Earnings 184,387 177,493 168,383 3.88 % 9.50 %
Accumulated Other Comprehensive (6,745 ) (9,870 ) (4,943 ) -31.66 % 36.46 %
Loss, Net of Tax
Total Stockholders' Equity 393,523 305,274 300,657 28.91 % 30.89 %
Total Liabilities and $ 3,766,439 $ 3,628,469 $ 3,330,231 3.80 % 13.10 %
Stockholders' Equity
CONSOLIDATED STATEMENTS OF Three Months Ended
INCOME
% Change % Change
March 31, December 31, March 31, Mar. 2009 vs. Mar. 2009
vs.
2009 2008 2008 Dec. 2008 Mar. 2008
INTEREST INCOME
Interest on Fed Funds Sold and $ 198 $ 51 $ 19 288.24 % 942.11 %
Short Term Investments
Interest and Dividends on 7,267 7,351 5,892 -1.14 % 23.34 %
Securities
Interest on Loans 35,946 38,080 35,168 -5.60 % 2.21 %
Total Interest Income 43,411 45,482 41,079 -4.55 % 5.68 %
INTEREST EXPENSE
Interest on Deposits 8,407 9,964 10,315 -15.63 % -18.50 %
Interest on Borrowed Funds 5,015 5,023 4,999 -0.16 % 0.32 %
Total Interest Expense 13,422 14,987 15,314 -10.44 % -12.35 %
Net Interest Income 29,989 30,495 25,765 -1.66 % 16.39 %
Less - Provision for Loan 4,000 5,575 1,342 -28.25 % 198.06 %
Losses
Net Interest Income after 25,989 24,920 24,423 4.29 % 6.41 %
Provision for Loan Losses
NON-INTEREST INCOME
Service Charges on Deposit 3,648 3,914 3,635 -6.80 % 0.36 %
Accounts
Wealth Management 2,330 2,580 2,676 -9.69 % -12.93 %
Mortgage Banking Income 1,156 497 1,114 132.60 % 3.77 %
BOLI Income 729 739 520 -1.35 % 40.19 %
Net Gain/(Loss) on Sale of 1,379 - (609 ) n/a -326.44 %
Securities
Other-Than-Temporary-Impairment
on Certain Pooled Trust - (4,646 ) - -100.00 % n/a
Preferred Securities
Other Non-Interest 1,231 568 902 116.73 % 36.47 %
(Loss)/Income
Total Non-Interest Income 10,473 3,652 8,238 186.77 % 27.13 %
NON-INTEREST EXPENSE
Salaries and Employee Benefits 14,859 14,468 14,143 2.70 % 5.06 %
Occupancy and Equipment 3,705 3,419 2,903 8.37 % 27.63 %
Expenses
Data Processing and Facilities 1,416 1,403 1,284 0.93 % 10.28 %
Management
Merger & Acquisition Expense 1,538 - 744 n/a n/a
WorldCom Bond Loss Recovery - - (418 ) n/a n/a
FDIC assessment 536 559 58 -4.11 % 824.14 %
Other Non-Interest Expense 6,253 6,741 5,318 -7.24 % 17.58 %
Total Non-Interest Expense 28,307 26,590 24,032 6.46 % 17.79 %
INCOME BEFORE INCOME TAXES 8,155 1,982 8,629 311.45 % -5.49 %
PROVISION FOR INCOME TAXES 1,767 (1,039 ) 2,321 -270.07 % -23.87 %
NET INCOME $ 6,388 $ 3,021 $ 6,308 111.45 % 1.27 %
PREFERRED STOCK DIVIDEND $ 1,173 $ - $ - n/a n/a
NET INCOME AVAILABLE TO COMMON $ 5,215 $ 3,021 $ 6,308 72.62 % -17.33 %
SHAREHOLDERS
BASIC EARNINGS PER SHARE $ 0.32 $ 0.19 $ 0.44 68.42 % -27.27 %
DILUTED EARNINGS PER SHARE $ 0.32 $ 0.18 $ 0.44 77.78 % -27.27 %
BASIC AVERAGE SHARES 16,285,955 16,280,552 14,386,845 0.03 % 13.20 %
DILUTED AVERAGE SHARES 16,303,836 16,331,118 14,459,978 -0.17 % 12.75 %
PERFORMANCE RATIOS:
Net Interest Margin (FTE) 3.55 % 3.81 % 3.90 % -6.82 % -8.97 %
Return on Average Assets 0.56 % 0.34 % 0.87 % 64.71 % -35.63 %
Return on Average Common Equity 6.59 % 3.92 % 10.01 % 68.37 % -34.07 %
RECONCILIATION TABLE - NON-GAAP
FINANCIAL INFORMATION
NET INCOME AVAILABLE TO COMMON $ 5,215 $ 3,021 $ 6,308 72.62 % -17.33 %
SHAREHOLDERS (GAAP)
Non-Interest Income Components
(Less)/Add - Net (Gain)/ Loss
on Sale of Securities, net of (896 ) - 396
tax
Non-Interest Expense Components
Add - Merger and Acquisition 1,000 - 484
Expenses, net of tax
Less - WorldCom Bond Loss - - (272 )
Recovery, net of tax
NET OPERATING EARNINGS $ 5,319 $ 3,021 $ 6,916 76.07 % -23.08 %
Diluted Earnings Per Share, on $ 0.33 $ 0.18 $ 0.48 83.33 % -31.25 %
an Operating Basis
RECONCILIATION TABLE - NON-GAAP FINANCIAL INFORMATION
Certain non-core items are included in the computation of earnings in accordance with United States of
America generally accepted accounting principles ("GAAP") in both 2008 and 2007 as indicated by the table
below. In an effort to provide investors with information regarding the Company's results, the Company has
disclosed the following non-GAAP information, which management believes provides useful information to the
investor. This information should not be viewed as a substitute for operating results determined in
accordance with GAAP, nor is it necessarily comparable to non-GAAP information which may be presented by
other companies.
Three Months Ended
% Change % Change
March 31, December 31, March 31, Mar. 2009 vs. Mar. 2009
vs.
2009 2008 2008 Dec. 2008 Mar. 2008
Non-Interest Income GAAP $ 10,473 $ 3,652 $ 8,238 186.77 % 27.13 %
(Less)/Add - Net (Gain)/ Loss (1,379 ) - 609 n/a n/a
on Sale of Securities
Add -
Other-Than-Temporary-Impairment
on Certain
Pooled Trust Preferred - 4,646 - -100.00 % n/a
Securities
Non-Interest Income as Adjusted $ 9,094 $ 8,298 $ 8,847 9.59 % 2.79 %
Non-Interest Expense GAAP $ 28,307 $ 26,590 $ 24,032 6.46 % 17.79 %
Less - Merger & Acquisition (1,538 ) - (744 ) n/a 106.72 %
Expenses
Add - WorldCom Bond Loss - - 418 n/a -100.00 %
Recovery
Non-Interest Expense as $ 26,769 $ 26,590 $ 23,706 0.67 % 12.92 %
Adjusted
ASSET QUALITY
For the Period Ending
March 31, December 31, March 31,
2009 2008 2008
(Dollars in Thousands, Except Per Share Data)
Nonperforming Loans
Commercial & Industrial Loans $ 3,884 $ 1,942 $ 516
Small Business Loans 1,638 1,111 584
Commercial Real Estate Loans 10,833 12,370 3,578
Residential Real Estate Loans 8,521 9,394 3,733
Installment Loans - Home Equity 2,940 1,090 1,208
Installment Loans - Auto 665 813 933
Installment Loans - Other 479 213 346
Total Nonperforming Loans $ 28,960 26,933 10,898
Non-Accrual Securities 1,698 910 -
Other Assets in Possession 224 231 -
Other Real Estate Owned 1,764 1,809 1,019
Nonperforming Assets 32,646 29,883 11,917
Nonperforming Loans/Gross Loans 1.08 % 1.01 % 0.43 %
Allowance for Loan 129.45 % 137.56 % 299.22 %
Losses/Nonperforming Loans
Gross Loans/Total Deposits 100.90 % 103.17 % 102.73 %
Allowance for Loan Losses/Total 1.40 % 1.39 % 1.29 %
Loans
Net charge-offs $ 3,560 $ 1,813 $ 1,089
(quarter-to-date)
Net charge-offs to average 0.53 % 0.28 % 0.20 %
loans (annualized)
Financial Ratios
Book Value per Common Share $ 19.64 $ 18.75 $ 18.48
Tangible Common
Capital/Tangible Asset
(proforma to include the tax 5.83 % 5.67 % 5.86 %
deductibility of goodwill and
exclude impact of CPP)
Tangible Common Book Value per
Share (proforma to include the $ 12.81 $ 12.19 $ 11.54
tax deductibility of goodwill
and exclude impact of CPP)
Capital Adequacy
Tier one leverage capital ratio 9.77 % 7.55 % 8.55 %
(1)
(1) Estimated number for March
31, 2009
INDEPENDENT BANK CORP.
SUPPLEMENTAL FINANCIAL
INFORMATION
CONSOLIDATED AVERAGE BALANCE Three Months Ended
SHEETS AND AVERAGE RATE DATA
(Unaudited - Dollars in March 31, 2009 December 31, 2008 March 31, 2008
Thousands)
Interest Interest Interest
Average Earned/ Yield/ Average Earned/ Yield/ Average Earned/ Yield/
Balance Paid Rate Balance Paid Rate Balance Paid Rate
Interest-Earning Assets:
Federal Funds Sold and Short $ 121,394 $ 198 0.65 % $ 19,979 $ 51 1.02 % $ 624 $ 19 12.18 %
Term Investments
Securities:
Trading Assets 2,706 25 3.70 % 3,036 45 5.93 % 2,579 28 4.34 %
Taxable Investment Securities 590,400 6,937 4.70 % 558,345 6,937 4.97 % 423,783 5,386 5.08 %
Non-taxable Investment 30,161 469 6.22 % 38,461 568 5.91 % 45,833 735 6.41 %
Securities (1)
Total Securities: 623,267 7,431 4.77 % 599,842 7,550 5.03 % 472,195 6,149 5.21 %
Loans (1) 2,667,073 36,065 5.41 % 2,617,938 38,200 5.84 % 2,207,337 35,285 6.39 %
Total Interest-Earning Assets $ 3,411,734 $ 43,694 5.12 % $ 3,237,759 $ 45,801 5.66 % $ 2,680,156 $ 41,453 6.19 %
Cash and Due from Banks 60,079 65,772 60,598
Other Assets 251,307 244,772 170,328
Total Assets $ 3,723,120 $ 3,548,303 $ 2,911,082
Interest-bearing Liabilities:
Deposits:
Savings and Interest Checking $ 740,020 $ 996 0.54 % $ 720,695 $ 1,490 0.83 % $ 607,387 $ 1,591 1.05 %
Accounts
Money Market 518,438 1,696 1.31 % 498,845 2,356 1.89 % 454,460 2,578 2.27 %
Time Deposits 831,196 5,715 2.75 % 859,894 6,118 2.85 % 607,399 6,146 4.05 %
Total interest-bearing $ 2,089,654 $ 8,407 1.61 % $ 2,079,434 $ 9,964 1.92 % $ 1,669,246 $ 10,315 2.47 %
deposits:
Borrowings:
Federal Home Loan Bank $ 410,126 $ 2,675 2.61 % $ 309,653 $ 2,335 3.02 % $ 300,577 $ 2,942 3.92 %
Borrowings
Federal Funds Purchased and
Assets Sold
Under Repurchase Agreement 172,884 856 1.98 % 168,343 1,144 2.72 % 139,276 1,153 3.31 %
Junior Subordinated Debentures 61,857 947 6.12 % 61,857 995 6.43 % 55,059 860 6.25 %
Subordinated Debentures 30,000 537 7.16 % 30,000 546 7.28 % - - -
Other Borrowings 1,772 - 0.00 % 2,736 3 0.44 % 4,439 44 3.96 %
Total Borrowings: 676,639 5,015 2.96 % 572,589 5,023 3.51 % 499,351 4,999 4.00 %
Total Interest-Bearing $ 2,766,293 $ 13,422 1.94 % $ 2,652,023 $ 14,987 2.26 % $ 2,168,597 $ 15,314 2.82 %
Liabilities
Demand Deposits 530,425 550,073 475,020
Other Liabilities 42,405 38,261 15,471
Total Liabilities $ 3,339,123 $ 3,240,357 $ 2,659,088
Stockholders' Equity 383,997 307,946 251,994
Total Liabilities and $ 3,723,120 $ 3,548,303 $ 2,911,082
Stockholders' Equity
Net Interest Income $ 30,272 $ 30,814 $ 26,139
Interest Rate Spread (2) 3.18 % 3.40 % 3.37 %
Net Interest Margin (3) 3.55 % 3.81 % 3.90 %
Supplemental Information:
Total Deposits, including $ 2,620,079 $ 8,407 $ 2,629,507 $ 9,964 $ 2,144,266 $ 10,315
Demand Deposits
Cost of Total Deposits 1.28 % 1.52 % 1.92 %
Total Funding Liabilities, $ 3,296,718 $ 13,422 $ 3,202,096 $ 14,987 $ 2,643,617 $ 15,314
including Demand Deposits
Cost of Total Funding 1.63 % 1.87 % 2.32 %
Liabilities
The total amount of adjustment to present interest income and yield on a
(1) fully tax-equivalent basis is $283, $319, and $374 for the three months
ended March 31, 2009, December 31, 2008, and March 31, 2008, respectively.
Interest rate spread represents the difference between the weighted average
(2) yield on interest-earning assets and the weighted average cost of
interest-bearing liabilities.
(3) Net interest margin represents annualized net interest income as a
percentage of average interest-earning assets.
Certain amounts in prior year financial statement have been reclassified to
conform to the current year's presentation.
Source: Independent Bank Corp
Contact: Independent Bank Corp
Chris Oddleifson, 781-982-6660
President and Chief Executive Officer
or
Denis K. Sheahan, 781-982-6341
Chief Financial Officer